BUSINESS

Chinese Owner of British Steel Seeks Compensation From U.K. After State Takeover

Published: Jun. 11, 2026 7:10 p.m. GMT+8

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Jingye has started consultation procedures with the British government, seeking recompense after its 1.2 billion pound investment was wiped out. Photo: VCG

Chinese steelmaker Hebei Jingye Group Co. Ltd. has initiated consultation procedures with the U.K. government under a bilateral investment treaty, seeking compensation for losses after the state takeover of British Steel Ltd.

On Thursday, Jingye issued its first public statement since the U.K. government took control of British Steel last year, accusing London of failing to provide reasonable compensation.

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Chinese steelmaker Hebei Jingye Group seeks compensation from UK government under 1986 bilateral investment treaty after British Steel was nationalized in April 2025.
Jingye acquired British Steel for £53 million in 2020 and invested over £1.2 billion, while the UK has offered roughly £100 million in compensation.
The dispute highlights geopolitical risks for Chinese investors as Western governments protect domestic industries under national security mandates.

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Hebei Jingye Group Co. Ltd.: Hebei Jingye Group, a Chinese steelmaker, acquired British Steel in March 2020 for £53 million and invested over £1.2 billion. Following the UK government's state takeover of British Steel in 2025, Jingye initiated consultation under the 1986 China-UK investment treaty, seeking compensation for losses it claims were inadequately addressed.

British Steel Ltd.: British Steel Ltd. was acquired by China's Hebei Jingye Group in 2020 for £53 million, with 4.5 million tons annual capacity. It has reported losses since 2021, losing £205 million in 2023. The UK government nationalized it in 2025, offering only £100 million compensation, sparking a dispute under the 1986 China-UK investment treaty.

AI generated, for reference only